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How to resolve credit card lawsuits using Chapter 7 bankruptcy

Addressing Credit Card Debt Through Chapter 7 Bankruptcy

In Bucks County, rising interest rates are compounding the credit card debt crisis for many residents. Having a large amount of debt can cause significant stress and make you feel powerless. This is especially true if you are facing a lawsuit for failing to pay your credit card bills.

Addressing this debt promptly, ideally right after defaulting or being notified of a lawsuit, is crucial. Engaging an attorney before a judgment is made provides more options for resolving this issue.

Credit card judgments grant creditors enhanced collection capabilities, such as freezing bank accounts or selling personal assets. In Pennsylvania, such a judgment can become a lien on your real estate if you're a homeowner.

However, there's a ray of hope. Chapter 7 bankruptcy is a quick and commonly used method for handling various debts. These debts can include credit cards, loans, and medical bills.

The benefit of Chapter 7 bankruptcy is that it allows individuals to avoid repayment of these debts. Filing for bankruptcy halts credit card lawsuits and collection efforts.

Typically, Chapter 7 bankruptcy discharges credit card debts, even post-judgment, freeing you from liability. If a judgment has created a lien on real estate, a motion in bankruptcy may be needed to remove the lien. Consulting with a bankruptcy attorney is vital for appropriate guidance.

The Law Offices of Michael Schwartz specialize in bankruptcy and debt relief, ensuring expert legal advice.

Handling Credit Card Judgments

In Bucks County, a credit card judgment empowers creditors to seize assets and freeze bank accounts. Hence, it's important to address these judgments swiftly.

Chapter 7 bankruptcy might not be necessary for smaller amounts of debts and judgments. In such instances, the Law Office of Michael Schwartz may propose alternatives like debt negotiation.

Michael Schwartz is skilled in dealing with creditors. He can often reach a settlement for less than the full amount owed. He does this by arranging a one-time payment within a reasonable time.

Be aware that settling for less than the full judgment amount can have tax implications.

In certain situations, Chapter 13 bankruptcy could be the optimal solution for handling a credit card judgment. This type of bankruptcy requires the creditor to adhere to a five-year payment plan. Typically, the creditor pays less than the total amount owed, and the remaining balance is forgiven.

For a free consultation to explore the best approach to resolving a credit card judgment, contact attorney Michael Schwartz at 215-396-7900. As a skilled bankruptcy lawyer in Bucks County, Michael Schwartz assists individuals facing credit card judgments. Consider choosing Michael Schwartz for your bankruptcy legal needs.

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